Fanatics Company Purchased a Patent at the Beginning of the Year

Essay

Fanatics Company purchased a patent at the beginning of the year for $450,000. Economic benefits were expected for only 10 years, but the patent's legal life is 20 years. Also during the year, the company incurred research and development costs of $185,000.
A)Determine the following amounts:
1.Research and Development Expense for the year
2.Patent Amortization Expense for the year
B)Prepare the intangible assets section of the balance sheet at the end of the year